Analysis of Seocho-gu Seocho-dong 1618-2 Building Sale Case: 2019 Transaction at ₩3.48 Billion, What's Its Current Value?
Hello. Seocho-gu, an area in Seoul whose real estate value is highly regarded, comparable to Gangnam, is known for its excellent transportation hubs like Nambu Bus Terminal Station. Today, we will analyze a building sale case in Seocho-dong, exploring the market context at that time, its current (as of August 28, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Seocho-dong Building Overview: ₩3.48 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 1618-2 Seocho-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Nambu Bus Terminal Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩3.48 billion
- Land Price: ₩24.83 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 140.15 pyeong (approx. 463.3㎡)
- Building Area: 129.16 pyeong (approx. 427㎡)
- Zoning Classification: Exclusive Residential Area Type 1
- Floors: B1 ~ 2F
- Road Conditions: Fronting a 6m road
- Completion Year: June 15, 1988
- Official Land Price (at the time): Approx. ₩16.60 million/pyeong (approx. 1.50 times lower than land price)
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩3.48 billion, forming a price of ₩24.83 million per pyeong, which falls within the lower-middle price range in Seocho-dong, Seocho-gu. Considering its land area of 140.15 pyeong and building area of 129.16 pyeong, it could be classified as a small building. Although its location in an Exclusive Residential Area Type 1 severely limits commercial use, its price somewhat reflected the transportation premium near Nambu Bus Terminal Station.
Its frontage on a 6m road is suitable for small residential uses, but the limited commercial expandability would have impacted its price at the time.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Seocho-dong in Seocho-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Nambu Bus Terminal Station and major development prospects such as the Seocho District Redevelopment Project. It is estimated that the per-pyeong price of real estate in Seocho-gu has increased by an average of 20% to 30% during this period.
Applying this growth rate to the 2019 land price, we can estimate its current value as of August 28, 2025:
- Applying a 20% growth rate to ₩24.83 million/pyeong from 2019 results in approximately ₩29.79 million/pyeong.
- Applying a 30% growth rate results in approximately ₩32.28 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩29 million and ₩32 million per pyeong in 2025, which would lead to a significant increase in its overall market price.
Key Factors Driving Real Estate Value Appreciation
Behind this value appreciation are several positive factors inherent to the Seocho-dong building:
- Location: Its frontage on a 6m road near Nambu Bus Terminal Station offers good transportation accessibility. However, it is an Exclusive Residential Area Type 1, which limits commercial use.
- Zoning Limitations: Exclusive Residential Area Type 1 is designated for the protection of residential environments, making it difficult to convert to retail or office use. This becomes a significant constraint when discussing development value.
- Redevelopment Demand: Completed in 1988, it is an older building, and the demand for redevelopment could be a primary factor for value appreciation.
- Local Development Prospects: The Seocho District Redevelopment Project and revitalization of the commercial area around Nambu Bus Terminal Station are strong prospects that contribute to the long-term value appreciation of this building.
Investment Implications and Precautions
This case presents the following important implications for investors:
- Zoning Restrictions: Exclusive Residential Area Type 1 has strong legal restrictions on commercial use, so careful consideration is required when investing. This is particularly important when calculating development profit rates through reconstruction.
- Redevelopment Potential: As an older building, it has the potential to create new value through reconstruction. If located on a corner, it can offer high utility upon reconstruction.
- Stable Rental Demand: The residential demand around Nambu Bus Terminal Station is relatively stable, allowing for expectations of long-term rental income.
However, being an older building (completed in 1988), a meticulous review of the reconstruction approval process and estimated costs is essential.
Conclusion: Seocho-gu Nambu Bus Terminal Station Building, A Restricted but Potentially Valuable Investment
The Seocho-gu Seocho-dong building sale case demonstrates how real estate value is formed by balancing the limitations of zoning with the locational advantage of Nambu Bus Terminal Station and the potential for value appreciation through redevelopment. It can be an attractive investment if development prospects are strong.
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